CK Hutchison, the recently-restructured conglomerate that owns 3 as well as various operators in Asia, on Tuesday reported that earnings at some of its telco businesses were hit by currency fluctuations in the first half of the year, but otherwise performed solidly.
At Hutch’s European business, 3 Group, revenue for the six months to 30 June came in at HK$30.57 billion (€3.43 billion), down 2% on last year due to the weak ness of local currencies.
However, EBITDA surged 20% to HK$7.78 billion, driven by accretive earnings following 3 Ireland’s acquisition of local rival O2, and an improved customer service margin at 3UK.
At the end of June, 3 Group’s active European customer base reached 25.5 million, up 2% on the six months to December 2014.
In January, CK Hutchison owner Li Ka-Shing reorganised his business empire by merging his two conglomerates, Hutchison Whampoa and Cheung Kong Holdings to create CK Holdings, and by spinning off his property business into a separate company called Cheung Kong Property.
The reorganisation saw CK Hutchison increase its stake in Hutchison Telecommunications Hong Kong Holdings (HTHKH), which has operations in Hong Kong and Macau, to 66.09% from 65.01%.
First half revenue at this particular division surged 77% to HK$11.02 billion, while pretax profit increased to HK$797 million from HK$538 million a year ago, reflecting what CK Hutch called "improvements" in its mobile operations.
However, the picture was less rosy at Hutchison Asia Telecommunications (HAT), which owns mobile operators in Indonesia, Sri Lanka, and Vietnam.
HAT saw revenue fall 9% to HK$3.18 billion, while EBITDA fell 18% to HK$411 billion, mainly due to the depreciation of the Indonesian rupiah. On the bright side, the unit ended June with 62.6 million active customers, up 15% from the end of 2014.
Finally, Hutchison Australia – CK’s 50:50 joint venture with Vodafone – generated revenue of AUD$887 million (HK$4.95 billion/€555.83 million) in the first half, an increase of 3% on the year earlier period.
However, net loss attributable to shareholders widened to AUD$90 million from AUD$79 million a year ago, as lower operating costs were offset by higher handset costs and higher finance costs due to the stronger U.S. dollar.
